All Forum Posts by: Maria Johnson

FYI the interest of doing it in trusts would be to avoid probate and any inheritance taxes, but again, I'm just doing research and am not a lawyer so just trying to get more info so I know which direction to go and what to ask when I get things set up 

We currently have rental properties that are mortgages in our name.I am a real estate professional, so we utilize the properties' depreciation to offset my spouse's W-2 income. We are seeking to establish an estate plan to transfer these mortgages to Trusts without forfeiting tax benefits or triggering due on sale clauses.
Once these mortgages are paid off and/or generating more cash flow, we intend to use them as passive income for retirement and retain the option to access the equity for emergencies. 

Would aslo need to have the debts separately from personal liability so it does not interfere with future personal financing. How do others set theirs up? I hear LLC, no LLCs but umbrella policies and keep pulling out equity to help with asset protection.

I have 6 rentals that break even and do not cash flow but help with depreciation but also plan to pay off in next 15 years.  After paid off would bring in about 10-15K a month in rent and equity of 2 mil today's numbers (hopefully double in those 15 years).  4 rentals in texas 2 out of state.

I'm new here and just posted this on the forum but maybe I can find out here:

I am a real estate professional with a spouse who makes about 300K depending on bonuses and stock.  I plan to buy 2 properties in 2022 as short term rentals and 2 condos in 2023 as short term rentals and am planning to use the bonus depreciation on these purchases to save money from paying less taxes that can then help us save to buy more properties for me to manage.

My question is this, through a cost segregation study , can I bonus depreciate the 2 properties at 100% (will be about 75k each) for 2022 to go against our total taxes, including his about 120K that he will owe on taxes through the bonus depreciation), and then carry that over to the other years including the 80% of 2023 bonus depreciation of the 2 condos (which will be about 50K x2)? Here is the example:

1. 2022

Buy 1 house, 100% bonus depreciation = 75K
Buy 2nd house, 100% bonus depreciation= 75K

Total 150K bonus depreciation. If we owe about 110 in taxes with w2 and our rentals, does the 150K come out in schedule E and what we owe in taxes comes out of there? Guess if he can tell work to claim more deductions we would have more paycheck to go against this depreciation?

2. 2023

Buy 1 condo, 80% bonus depreciation= 50K

Buy 2 condo, 80% bonus depreciation= 50K

Same idea? Just trying to see how it works so that what we save on taxes, we can use more money to actually buy these 4 properties before he retires in 3 years, which is why we would want to take the tax advantage now before our income becomes way less when he no longer works a high income job.

I am a real estate professional and my spouse has a regular job that makes most of the money (w-2), he makes about 300K and sometimes gets bonuses.

I plan to buy 2 properties in 2022 as short term rentals and 2 condos in 2023 as short term rentals and am planning to use the bonus depreciation on these purchases to save money from paying less taxes that can then help us save to buy more properties for me to manage.

My question is this, through a cost segregation study , can I bonus depreciate the 2 properties at 100% (will be about 75k each) for 2022 to go against our total taxes, including his about 120K that he will owe on taxes through the bonus depreciation), and then carry that over to the other years including the 80% of 2023 bonus depreciation of the 2 condos (which will be about 50K x2)?  Here is the example:

1. 2022

Buy 1 house, 100% bonus depreciation = 75K
Buy 2nd house, 100% bonus depreciation= 75K

Total 150K bonus depreciation.  If we owe about 110 in taxes with w2 and our rentals, does the 150K come out in schedule E and what we owe in taxes comes out of there?  Guess if he can tell work to claim more deductions we would have more paycheck to go against this depreciation?

2.  2023

Buy 1 condo, 80% bonus depreciation= 50K

Buy 2 condo, 80% bonus depreciation= 50K

Same idea?  Just trying to see how it works so that what we save on taxes, we can use more money to actually buy these 4 properties before he retires in 3 years, which is why we would want to take the tax advantage now before our income becomes way less when he no longer works a high income job.